The production function is Y = 3KL. If there are 10 units of capital (K) and 50 units of labor (L), the aggregate output is: A) 1,500 B) 500 C) 3,500 D) 35,010

Question:

The production function is Y = 3KL. If there are 10 units of capital (K) and 50 units of labor (L), the aggregate output is:

A) 1,500

B) 500

C) 3,500

D) 35,010

Production Function

The production function shows the relationship between the inputs used by a firm and the total output produced using those inputs. The production function slopes upwards, meaning that the total product increases at a decreasing rate.

Answer and Explanation:

Become a Study.com member to unlock this answer! Create your account

View this answer

See full answer below.

Learn more about this topic:

Production Function in Economics: Definition, Formula & Example

from

Chapter 11 / Lesson 27

53K

Learn about the production function. Read the production function definition in economics, learn the production function formula. Plus, see graphs and examples.

Related to this Question

An economy has a total of 320 units of labor and 80 units of capital to use on the production of 2 goods. The production functions for the goods are a function of the labor and capital used in each pr
Consider a production economy with 10 units of capital, K, and 10 unitsof labor, L. Capital and Labor can be used to produce the goods, x and y. The production functions of x and y are x = Min{K,L} y
Suppose a firm has a fixed-proportions production function that uses two units of labor combined with one unit of capital to produce one unit of output. a) If the firm has 10 units of capital, draw the short-run production. That is, draw the total product
An economy with production function Y = F(K) = the square root of K that has 400 units of capital will produce units of output. A. 1,600 B. 400 C. 40 D. 20
A firm is producing 1,000 units of output with 40 units of labor and 30 unit of capital. The marginal product of the last units of labor and capital are, respectively, MPL = 60 and MPK = 120. The prices of labor and capital are, respectively, w = 30 and r
Suppose that the production of an output uses labor and capital as inputs. These are related by a production function of y = K^(1)/(2) L^(1)/(2), where 'y' is the units of output, 'K' is the units of
If the production function is Q=K^0.5L^0.5 and capital is fixed at 1 unit, then the average product of labor when L=25 is: a. 2/5 b. 1/5 c. 10 d. none of the statements associated with the questio
Output Produced by One Unit of Labor (Output/Labor): *U.S...........................Flags = 20....................Fish = 120 *Sweden................Flags = 10.....................Fish = 40 Which of th
In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. Units of Labor Units of Output 5 10 15 20 40 100 180 220 If th
1. A firm's production function is: Q=20L^{0.6}K^{0.4}. Labor costs $100 per unit and capital costs $50. The firm sets a production target of 1000 units. a. Show or explain whether the production fun
If labor and capital (inputs) are perfect complements in production, but 4 units of labor are needed per unit of capital, find the production and cost functions. Find the cost function for the general
If the production function is Q = K^(1/2) L^(1/2) and capital is fixed at 100 units, then the marginal product of labor (MPL) will be?
The production function of a firm is y = min {2l, k} where y, l and k rest denote output, labor, and capital. The firm has to produce 10 units of output and the wage rate is 2 and the price of capital
Consider a firm that can produce 1850 units of output by using 4 units of labor and 20 units of capital, or alternatively 2000 units of output by using 5 units of labor and 20 units of capital. If the
If the production function is Q = K^{1/2} L^{1/2} and labor is fixed at 36 units, then the average product of capital when k = 25 is?
A firm uses capital (K) and labor (L) to produce its output, according to the production function. In the current period (right now), the firm is using 3,125 units of labour service and producing 1,600 units of output. If it reduces its use of capital by
Holding capital fixed at K=2 units, the firm's production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5, Q=22. Also, the firm can sell each unit of output at a price of P=$2. If so, the marginal product of labor
A firm uses capital (K) and Labor (L) to produce its output, according to the production function Q(K, L) = K^{3/5}L^{2/5}. In the current period, the firm is using 3,125 units of labor service and producing 1,600 units of output. If it reduces its use of
The production function for a country is given by Y = F(K, L) = K0.4L0.6. From this production function, we can solve for the marginal products of capital and labor. Total physical capital, K, is 6400, and total labor available, L, is 12,000. a. What is t
Suppose the production function in an economy is Y = 3K^1/3L^2/3, where K is the amount of capital and L is the amount of labor. The economy begins with 64 units of capital and 125 units of labor. a. Show that the production function is CRTS. b. How muc
A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs $100 per unit and labor $20.00 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output.
A firm is using 500 units of capital and 200 units of labor to produce 10.000 units of output. Capital costs $100 per unit and labor $20 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. Th
A producer?s production function is q=6K^(1/3)L^(1/2). The market price for the firm's output is p, the cost of capital is $4 per unit used and the cost of labor is $3 per unit. a. Write an equation f
A firm is currently producing 200 units of output using 60 hours of labor and 80 hours of capital. The marginal product of labor is 12 units of output per hour, and the marginal product of capital is 15 units of output per hour. If the wage rate is $6 per
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit.
a) If labor and capital (inputs) are perfect complements in production, but 4 units of labor are needed per unit of capital, find the production and cost functions. Find the cost function for the gene
Suppose we have an economy with only one aggregate production function, given by: Y = A(K + N^ 2/3 ) where Y is output, A is TFP, K is capital and N is labor. Let A = 9 and suppose the supply of labor, N^ S, is given by N^ S = 8w/3. Calculate the marke
Suppose a firms production function is Q = 2K0.5 L0.5. Its level of capital is fixed at 9 units, the price of labor is PL = $12 per unit, and the price of capital is PK = $10 per unit. The firms avera
With capital fixed at one unit with 1, 2, 3 units of labor added in equal successive units, production of the output increases from 300 (1 unit of labor), to 350 (2 units of labor) to 375 (3 units of labor). Which of the following is a correct interpretat
# of workers Units of output 0 0 1 40 2 90 3 126 4 150 The marginal product of the third worker is (Please Explain Answer) A. discrete production function. B. production function. C. continuous p
Suppose a firm's production function is Q = 4K0.5 L0.5. Its level of capital is fixed at 4 units, the price of labor is PL = $16 per unit, and the price of capital is PK = $20 per unit. The firms aver
The production function of an economy is: Y = A * K^{0.3} * H^{0.7} a. What is real output when K = 20, H = 50 and A = 2? b. Does this production function exhibit diminishing marginal productivity of capital? Calculate MPK if K increases from 50 to 60 a
The units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. What is the marginal product of the fourth unit? a. 2 b. 1 c. 37 d. 39
The units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. What is the marginal product of the fourth unit? a. 1 b. 2 c. 37 d. 39
If the units of variable input in a production process are 1, 2, 3, 4, and 5 and the corresponding total outputs are 10, 22, 33, 42, and 48, respectively, the marginal product of the fourth unit is a. 2. b. 6. c. 9. d. 42.
If the units of variable input in a production process are 1, 2, 3, 4, and 5 and the corresponding total outputs are 10, 22, 33, 42, and 48, respectively, what is the marginal product of the fourth unit? a. 2 b. 6 c. 9 d. 42
Firm A can produce a unit of output with 10 hours of labour and 5 units of capital. Firm B can produce a unit of output with 5 hours of labour and 10 units of capital. Firm C can produce a unit of output with 10 hours of labour and 10 units of capital. If
If the production function in a country is Y = the square root of K, the investment rate equals 0.25, and the depreciation rate is 0.05, then the steady-state level of the capital stock is equal to A. 10 units. B. 25 units. C. 5 units. D. 15 units.
A firms production function is given be Q=f(L,K)=L^1/2K^1/2. The prices of labor (w) and of capital (r) are $2.5/unit and $5/unit, respectively. Suppose that the firm has a capital employment of 25 un
Firm A can produce a unit of output with 10 hours of labor and 5 units of capital. Firm B can produce a unit of output with 5 hours of labor and 10 units of capital. Firm C can produce a unit of output with 10 hours of labor and 10 units of capital. If th
Suppose a firm with a production function given by Q = K^{0.25}L^{0.75} produces 1,500 units of output. The firm pays a wage of $50 per unit and pays a rental rate of the capital of $50 per unit. To produce 1,500 units of output, the firm should use: a. 1
A firm has the following production function: Q=2K L. Capital is fixed at 16 units. (a) calculate the average product of labor when 16 units of labor are utilized (b) calculate the marginal product
Company S has 10,000 units of capital, 2,000 workers, and a production function 200K^0.3 L^0.7. When company S increases its capital input by 100 units, its output increases approximately by (blank).
Suppose the production function in an economy is Y = 3 K^1/3L^2/3, where K is the amount of capital and L is the amount of labor. The economy begins with 64 units of capital and 125 units of labor. a. What are the rate of wage and rate of rent? b. What a
Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the
With an output function where L is labor and K is capital: Y = K^(1/4)L^(1/3) the current price of labor is $10 and capital cost is $1 per per machine (capital). The company currently uses 81 units of capital. The price of the output is $40. How does the
Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 units
Suppose a firm with a production function given by Q = 30 K^{0.5}L^{0.5} produces 1,500 units of output. The firm pays a wage of $40 per unit and pays a rental rate of capital of $640 per unit. How
If the production function in a country is Y = the square root of K, the investment rate equals 0.25, and the depreciation rate is 0.05, then the steady-state level of output is equal to A. 5 units. B. 10 units. C. 25 units. D. 15 units.
A firm's production function is given by f(L, K) = LK^1/2. The prices of labor and capital are w = 20 and r = 10, respectively. Suppose the firm's capital is fixed at 25. Find, as functions of output
Let the production function of a firm be given by Find the equation of the isoquant associated with a production level of 10 units of output.
A firm is currently producing their profit maximizing quantity of 600 units of output using 150 hours of labor and 50 hours of capital. The marginal product of labor is 10 units of output per hour and
A firm with the production function f(x1, x2, x3, x4) = min{(x1 + x2),(x3 + x4)} faces input prices w1 = $1, w2 = $5, w3 = $5, and w4 = $3. The firm must use at least 10 units of factor 2. What is th
In Country X capital per worker is 16, the production function is y=k^1/2. The fraction of output invested y=0.30. The depreciation rate is o=0.06. The stead state level of capital per worker K is?
A firm's production function is q=5L^0.5K^0.5. The firm's capital is fixed at K=400 units, in the short run. The rental rate of a unit of capital is $9, and the wage rate is $100 in the short run. De
A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K L^{0.5} where K is the amount of capital and L is the amount of labor employed by the firm. The unit prices of capital and labor are given by, r
If a firm employs 1 unit of labor, then 6 units of output will be produced; if it employs 2 units of labor, then 10 units of output will be produced; and if it employs 3 units of labor, then 12 units of output will be produced. It follows that: a) total o
Consider the following production functions. Y = AK^{0.5}L^{0.5}, Y = AK + L A. Fixing total factor productivity (A) at 10 and capital employment (K) at 4 units, what is the marginal product of labor associated with labor employment of 25, 35, and 45 for
A firm has production function f(L,K)=2L+4K. Then, if the firm substitutes 2 units of labor WITH one unit of capital? a. Production increases b. The Marginal product of labor decreases c. The Marg
The production function of a firm is Total product = 45L^2 - L^3 where L is labor. How many units of labor should be employed to maximize output?
A firm has a production function q = 0.25KL^(0.5), the rental rate of capital is $100, and the wage rate is $25. In the short-run, capital is fixed at 100 units. a. What is the firm's short-run produc
Assume that a firm employs labor and capital by paying $40 per unit of labor employed and $200 per hour to rent a unit of capital. Given that the production function is given by: Q = 10L - L^2+ 60K -1.5K^2, where Q is total output, L is labor, and K is c
A firm has the following production function: Q = 50K + 20L. Each unit of capital costs $4 to employ and each unit of labor costs $1 to employ. Labor and capital are this firm's only costs of production. The firm is currently producing 250 units of output
The short-run production function of a profit maximizer firm is given by f(L) = 6L^(2/3), where L is the amount of labor it uses. The cost per labor unit is w = 6, and the price per unit of output is p = 3. 1) How many units of labor will the firm hire?
Suppose a firm follows the production function f(E,K) = E^{1/2} K^{1/2}. The hourly wage of hiring one worker is $10 and the price of each unit of capital is $50. The price of output is constant at $100 per unit. a. Write out the function for the margina
1) The long-run aggregate supply curve shows the output level that an economy can produce when: a) Labor is fully employed. b) Capital is fully employed. c) Both capital and labor are fully employed.
A firm's production function is X = 6LK. Name five input combinations that would allow the firm to produce 180 units of output. In each case, what is the firm's capital-labor ratio? If the wage rate is $15 per unit and the rental rate on capital is $25 pe
Suppose a firm with a production function given by Q = 30K^0.5L^0.5 produces 3,000 units of output. The firm pays a wage of $40 per unit and pays a rental rate of capital of $640 per unit. How many units of labor and capital should the firm employ to mini
Suppose a firm with a production function given by Q = 30 K^{0.5}L^{0.5} produces 1,500 units of output. The firm pays a wage of $40 per unit and pays a rental rate of capital of $640 per unit. How many units of labor and capital should the firm employ to
Consider the following production function: q = 100 L^(0.5) K^(0.5). Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00. If the firm is using 100 units of capital in production and the production price is $10, how much labor shoul
For the production function below calculate the least cost of producing one unit of output for the given input prices. Q=X_{1}+2X_{2}, Px_{1}=1, and Px_{2}=4 Q=min(K,L), r=$5, and w=$1
1. Suppose that a firm's production function is q = 10L^{1/2}K^{1/2}. The cost of a unit of labor is $20 and the cost of a unit of capital is $80.a. If the firm wishes to produce 100 units of output,
A firm uses labor and capital to make cupcakes according to the production function Suppose the price of labor is =$5 per unit and the price of capital was =$10 per unit. 1. In the short run, capital
Suppose the hourly wage is $20 and the price of each unit of capital is $5. The price of output is constant at $20 per unit. The production function is f(E,K) = E^{5}K^{5} so that the MP_{e} is .5*(K/
Suppose a firm's production function is given by Q = LK^2. Suppose the firm is producing 16 units of output by using 1 units of Labor and 4 units of Capital. What is the slope of the isoquant at this
A firm is employing 100 units of labor and 50 units of capital to produce 200 widgets. Labor costs $10 per unit and capital $5 per unit. For the quantities of inputs employed. MPL = 7 and MPx = 5. In this situation, the firm A. is producing the maximum ou
A firm's production process uses labor, L, and capital, K, and materials, M, to produce an output, Q according to the function Q= KLM, where the marginal products of the three inputs are MP_L= KM, MP_K = LM, and MP_M= KL. The wage rate for labor is w = 2
A firm produces output with capital and labor. Suppose currently the marginal product of labor is 21 and the marginal product of capital is 6. Each unit of labor costs $12 and each unit of capital co
If a firm has a production function f(k,l) = 3k^{0.3}l^{0.5} where r = 8, w = 9, and the price of output = 17, What is profit maximizing level of capital? For this question both the level of capital
A firm is required to produce 50 units of output using quantities of labor and capital (L, K) = (3,8). For each of the following production functions, state whether it is possible to produce the requi
When 4 units of labor are employed, total product is 6 units; when 5 units of labor are employed, total product is 9 units of output. If the price of output is $5 per unit, what is the marginal reven
If a firm employs 1 unit of labor, then 6 units of output will be produced; if it employs 2 units of labor, then 10 units of output will be produced; and if it employs 3 units of labor, then 12 units of output will be produced. It follows that A) total ou
Consider a firm that produces using only labor and capital. It can produce 1,850 units of output by using 4 units of labor and 20 units of capital, or alternatively 2,000 units of output by using 5 un
Assume that a country's production function is Y = K^{1/2}L^{1/2}. a. What is the per-worker production function y = f(k)? b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What is Y?
A short-run production function is one where: at least one factor of production is fixed all factors of production are fixed capital may or may not be substituted for labor none of the above
Suppose a firm has a production process in which one more unit of labor can produce 4 units of output, while each additional unit of capital produces 2. If 20 units of L and K are used, 120 units of o
A firm produces output according to the production function Q = F(K, L) = 4K + 8L. 1. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing capital and labor for producing 32 units of output? 2. If th
Consider a production function for an economy: Y = 20 (L^{0.5}K^{0.4}N^{0.1}) where L is labor, K is capital, and N is land. In this economy the factors of production are in fixed supply with L = 100, K = 100, and N = 100. a) What is the level of output i
A plant's production function is Q = 2 KL + K . For this production function, M P K = 2 L + 1 and M P L = 2 K . The price of labor services, w , is $4 and of capital services, r , is $5 per unit. a.
If, by increasing the quantity of labor used by one unit, the firm can give up 2 units of capital and still produce the same output, the MRTSLK is A) 0.5 B) 2 C) 1 D) 4
A factory produces output (Q) using capital (K) and labor (L) according to the production function Y(K,L)=K^{1/5}L^{4/5}. Let r denote the price per unit capital, and w denote the price per unit labor, so that the total expenditure on these factors is r_K
Suppose a firm's production function is Q = 2K0.5L0.5. If the level of capital is fixed at 25 units, then what is the firm's short-run production function?
Consider a firm with two inputs, capital (K) and labor (L), with the price of capital Pk and the price of labor PL. The firm's production function is q(K, L) = 25KL. a. Write the firm's cost (as a function of K, L, Pk, PL). b. From the production function
An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depend on labor
The long-run production function for widgets is: Q=L^.6K^.4, where Q is total output, L is the quantity of labor employed, and K is the physical quantity of capital in place. a. Determine the short-run production function, if capital is fixed at 240 units
In terms of the factor proportions model, Nation 1 can produce good X with 2 units of labor and 3 units of capital while Nation 2 produces good Y with 3 units of labor and 4 units of capital. It can be concluded: A. That good Y requires more capital and i
In a typical production function model, we state that output is a function of: a. labor. b. marketing. c. financial capital. d. common stock.
Suppose the production function for a firm is given by: q=4L^{0.5}K^{0.25}. In the short run, the firm has 16 units of capital. Find the Marginal Product of Labor (MP_L). (Round to the nearest 2 decimal places if necessary.)

The production function is Y = 3KL. If there are 10 units of capital (K) and 50 units of labor...

Question:

Production Function

Answer and Explanation:

Become a member and unlock all Study Answers

Ask a question

Search Answers

Learn more about this topic:

Related to this Question

Explore our homework questions and answers library